The United States and China have reached the framework of a potential trade agreement that could defuse months of escalating tensions between the world’s two largest economies, U.S. Trade Secretary Scott Bessent said on Sunday.
Speaking to CBS, Bessent confirmed that negotiators had agreed on a “substantial framework” to present to President Donald Trump and Chinese President Xi Jinping, who are set to meet Thursday in South Korea.
The draft accord includes a final arrangement over TikTok’s U.S. operations and a one-year deferral of China’s newly tightened controls on exports of rare earth minerals, which are critical to U.S. manufacturing. Bessent also said he does not expect Trump’s threatened 100% tariffs on Chinese goods to take effect next mo…
The United States and China have reached the framework of a potential trade agreement that could defuse months of escalating tensions between the world’s two largest economies, U.S. Trade Secretary Scott Bessent said on Sunday.
Speaking to CBS, Bessent confirmed that negotiators had agreed on a “substantial framework” to present to President Donald Trump and Chinese President Xi Jinping, who are set to meet Thursday in South Korea.
The draft accord includes a final arrangement over TikTok’s U.S. operations and a one-year deferral of China’s newly tightened controls on exports of rare earth minerals, which are critical to U.S. manufacturing. Bessent also said he does not expect Trump’s threatened 100% tariffs on Chinese goods to take effect next month, and that Beijing has agreed to resume large-scale purchases of American soybeans.
“The tariffs will be averted,” Bessent said. “We’ve reached a substantial framework for the two leaders.”
A Bid to Halt Escalation
Since returning to the White House, President Trump has pursued an aggressive trade policy, imposing steep import tariffs and threatening further penalties aimed largely at China. Beijing has retaliated with its own measures, though both sides have held off on implementing new levies amid renewed negotiations.
Trump warned last month that 100% tariffs on Chinese goods would begin in November if Beijing failed to ease its restrictions on rare earth exports, which are used in everything from smartphones to solar panels. China controls roughly 90% of global rare earth processing, making it a powerful lever in the trade dispute.
According to Bessent, China has agreed to delay those export limits for a year while the policy is reviewed.
Soybeans and TikTok Also on the Table
Agriculture remains another key flashpoint. China — the world’s biggest soybean importer — halted most U.S. purchases after Trump reignited the tariff war earlier this year, dealing a blow to American farmers.
Bessent, who noted he is “actually a soybean farmer,” said the deal addresses agricultural concerns, adding that farmers would soon “feel really good” about the coming seasons once the agreement is made public.
On technology, Bessent confirmed that negotiators had reached a final deal on TikTok’s U.S. arm, with Trump and Xi expected to “consummate that transaction” during their upcoming meeting.
The U.S. has long pressed TikTok’s Chinese parent company ByteDance to divest its U.S. operations over national security fears. Trump has delayed implementing a full ban on the platform four times to allow for negotiations and extended the deadline again to December.
Talks in Asia
Bessent’s comments followed meetings with senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, which Trump attended as part of his Asia tour.
Beijing described the talks as “constructive,” signaling cautious optimism ahead of Thursday’s Trump–Xi summit.
If finalized, the deal could mark a turning point in a turbulent period for global trade, temporarily easing one of the most high-stakes economic rivalries in modern history.